Financial Review: State Auto Financial (NASDAQ:STFC) versus ICC (NASDAQ:ICCH)

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State Auto Financial (NASDAQ:STFC) and ICC (NASDAQ:ICCH) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

State Auto Financial has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, ICC has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Profitability

This table compares State Auto Financial and ICC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
State Auto Financial 3.95% 5.49% 1.64%
ICC 2.16% 1.99% 0.76%

Insider & Institutional Ownership

33.4% of State Auto Financial shares are owned by institutional investors. Comparatively, 11.3% of ICC shares are owned by institutional investors. 1.8% of State Auto Financial shares are owned by insiders. Comparatively, 22.5% of ICC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for State Auto Financial and ICC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
State Auto Financial 0 0 0 0 N/A
ICC 0 0 0 0 N/A

Earnings and Valuation

This table compares State Auto Financial and ICC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
State Auto Financial $1.28 billion 1.12 $12.80 million $1.20 27.34
ICC $51.16 million 0.90 $890,000.00 N/A N/A

State Auto Financial has higher revenue and earnings than ICC.

Dividends

State Auto Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. ICC does not pay a dividend. State Auto Financial pays out 33.3% of its earnings in the form of a dividend.

Summary

State Auto Financial beats ICC on 9 of the 12 factors compared between the two stocks.

About State Auto Financial

State Auto Financial Corporation, through its subsidiaries, engages in writing personal and business insurance products. It operates through four segments: Personal Insurance, Commercial Insurance, Specialty Insurance, and Investment Operations. The Personal Insurance segment primarily provides personal automobile, homeowners insurance, and other personal insurance products. The commercial insurance segment primarily provides commercial automobile, commercial multi-peril, fire and allied, general liability, and workers' compensation insurance covering small-to-medium sized commercial insurance market, as well as farm and ranch insurance. The Specialty Insurance segment provides commercial coverages that require specialized product underwriting, claims handling, or risk management services. The Investment Operations segment provides investment management services to affiliated insurance companies. The company markets its products primarily through independent agencies, including retail agencies and wholesale brokers. The company was founded in 1950 and is headquartered in Columbus, Ohio. State Auto Financial Corporation is a subsidiary of State Automobile Mutual Insurance Company.

About ICC

ICC Holdings, Inc., through its subsidiary, Illinois Casualty Company, provides property and casualty insurance products to the food and beverage industry in the United States. The company offers commercial multi-peril, liquor liability, workers' compensation, and umbrella liability insurance products. It also rents real estate properties. The company markets its products through a network of 160 independent agents in Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Ohio, and Wisconsin. ICC Holdings, Inc. was founded in 1950 and is headquartered in Rock Island, Illinois.

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